Blockchain technologies are changing not only the world of finance, but also the gaming industry. It introduced a new type of game called GameFi. In the article we tell what the essence of this type of game is, and give examples of 6 GameFi projects.
What is the meaning of the term
The term GameFi consists of two components: Game and Finance. This is what they call games that are focused on generating income. That is, they are played not for the sake of gameplay, but for the sake of making money. The mechanics of such games are also called Play-to-Earn (P2E).
GameFi projects use blockchain technology to function. On it, they place in-game tokens and NFTs. The first projects were created on the Ethereum blockchain, but over time, games began to be released on Polygon, WAX, BSC and other blockchains with lower fees.
To start playing and earning, the user will need to create a crypto wallet. It must support the blockchain on which the game runs.
Also, in many GameFi projects, you must first invest money in order to start earning. For example, to buy an NFT with a stronger character or another upgrade that gives you an advantage over other players.
The best way to show what GameFi is is with specific game examples. Below we talk about 6 projects and show why they can be classified as this type of game.
Axie Infinity — NFT creatures breeding game
This is one of the most popular GameFi projects developed by Vietnamese studio Sky Mavis. Axie Infinity is a collectible game that focuses on breeding Axie creatures, each of which is an NFT. They can be put up against each other in battles and thereby earn ERC-20 SLP tokens.
These tokens are needed to breed Axie creatures. For example, two weak NFTs with Axie make one new, stronger and more expensive NFT with Axie. When crossed, the new creature inherits the skills from the previous ones. And in total, Axie can be bred 9 times. Each new breeding will cost more SLP tokens, but will also result in a rarer and more expensive creature.
Players make money on Axie Infinity in two ways:
- by selling NFTs with Axie creatures,
- by selling ERC-20 SLP tokens.
Axie Infinity runs on the Ethereum blockchain and gives players the opportunity to earn money by selling NFTs and tokens. And to start playing, you need to spend about $500 to buy your first Axie creatures. Therefore, Axie Infinity is classified as GameFi.
Gods Unchained — a trading card blockchain game
This is a trading card game where each card is an NFT on the Immutable X blockchain. The essence of Gods Unchained is to build a strong deck and use it to fight other players, as well as participate in tournaments. The gameplay is similar to Hearthstone and Magic The Gathering.
Gods Unchained has both free and paid cards. The first ones are given during registration, so that you can immediately start playing and winning. And the second ones can be earned for defeating other players or bought in NFT marketplaces.
There are 2 ways to earn money in Gods Unchained:
- to sell rare and legendary cards — they can be purchased on NFT marketplaces, in special packs on the game website, or won in tournaments. There is also a chance of such a card dropping out in a free pack;
- to win the tournament — players compete for the main cash prize and the opportunity to get rare, expensive cards. Prizes are announced in advance on the game’s website and social networks.
The possibility of earning, as well as the use of NFT and blockchain technology distinguishes Gods Unchained from Hearthstone, Magic the Gathering and other trading card games. And that is why this project is classified as GameFi.
Alien Worlds — mining resources from planets
The game, the essence of which is the extraction of Trillium tokens (TLM) and NFTs on the WAX blockchain. The Alien Worlds universe is divided into 6 planets with 5 billion TLM distributed daily. NFT items such as shovels and pickaxes are used to mine resources. Upon registration, the player will only have access to the NFT shovel.
The gameplay is simple and similar to staking in DeFi apps. The user selects a planet, a piece of land and clicks on it to start mining TLM. Then he waits until they are credited to the account and selects the next piece of land. To speed up the process, players are buying NFTs with stronger items. For example, instead of a shovel, they buy a pickaxe.
Alien Worlds Gameplay
In addition to TLM mining, there are 3 more ways to earn money in the game:
- to create more expensive NFTs from several cheap ones;
- to buy NFT with a piece of land — the owner receives a commission from all TLM mined on it by other players;;
- to deposit TLM on another planet’s account at interest — this method is similar to a bank deposit.
All of the above methods of earning do not require involvement from the player — he just needs to press a couple of buttons and wait for the results, and then repeat these actions. The whole process is more like running a DeFi app than a game. Alien Worlds shows that users come to GameFi projects not for gameplay, but for earnings.
Neon District — a Cyberpunk RPG
This is a turn-based RPG set in the future. In the story, pizza delivery men are fighting against the government, which controls citizens with the help of implants. In addition to turn-based battles, the game also has automatic battle modes.
In Neon District, the player needs to assemble a team of 4 characters and equip them with items. To do this, when registering, he is given 300 NEON tokens. This is the usual in-game currency, accumulating which you can buy boxes with in-game items.
All in-game items are NFTs on the Polygon blockchain. They increase the performance of the characters and are divided into 5 rarity levels. The characters themselves can also be turned into NFTs. The more items it has, the more it will cost.
To make money on Neon District, you need to sell the received NFTs on the OpenSea marketplace. You can sell both ready-made characters and individual items.
Neon District stands out from the background of other GameFi projects in that no additional investments are required to start the game. The 300 NEON that the player receives at the start is enough to form a team and participate in battles.
Thetan Arena — Dota 2 on the blockchain
The first GameFi project in the MOBA genre. For example, MOBAs include such popular games as Dota 2, League of Legends, and Brawl Stars. In total, Thetan Arena has 4 game modes, among which there is a Battle Royal and Death Match.
For battles, players use special characters — heroes, each of which represents an NFT on the BSC blockchain. They are divided into 3 classes, each with a different level of health, attack damage and speed. Heroes are also divided into 3 levels of rarity, which differ in the reward for the match: the higher the level, the higher the reward.
Players earn by receiving and then selling BEP-20 THC tokens. They are given for leveling up the hero, inviting other players via a referral link, and winning battles. Moreover, the reward depends not only on the result of the battle, but also on the rarity of the hero and his appearance.
What sets Gods Unchained apart from other GameFi titles is its large number of game modes and gameplay that is more like a regular game. But the use of the blockchain, NFT heroes, which are divided into rarity levels and traded in the marketplaces, as well as the mechanics of earning on tokens, make it possible to classify this game as GameFi.
The Crypto Prophecies — a prediction game
This is one of the simplest GameFi projects in terms of game mechanics. Its essence is to predict the exchange rate of cryptocurrencies. Users challenge each other and participate in the battle, during which they place bets on changes in the value of the cryptocurrency. To track it during the battle, there is a candlestick chart in the center of the screen.
The peculiarity of The Crypto Prophecies is in the characters that users play. They can be equipped with NFT weapons that help you place bets during battles. There are also magical items in the game that can be used to prevent the opponent from making successful predictions.
The player’s earnings are made up of winning bets. Of these, 3% is deducted as a platform commission. The reward is in ERC-20 TCP tokens, which can be sold on cryptocurrency exchanges. The project is classified as GameFi because it uses NFT and the Ethereum blockchain, and its essence is in earning TCP tokens.
This information does not constitute investment advice, a recommendation or an encouragement to buy or sell financial instruments. Any person acting on its basis does so solely at their own risk.
GameFi is a new trend in the gaming industry. It includes projects that use blockchain in their mechanics. The essence of such games is to earn money, and not in the gameplay. That is why the mechanics of such games are also called Play-to-Earn (P2E).
We told you about 6 such games:
- Axie Infinity — one of the most popular GameFi projects, the essence of which is breeding NFT creatures in order to get more expensive NFT;
- Gods Unchained — a trading card game that is similar to Hearthstone and Magic The Gathering, only all the cards in it are NFTs;
- Alien Worlds — a game about mining tokens using NFT;
- Neon District — a turn-based role-playing game in a cyberpunk setting. All characters and items for them are NFTs;
- Thetan Arena — a project with 4 game modes in which players fight as NFT characters and earn tokens for winning battles;
- The Crypto Prophecies — a game where users place bets on changes in cryptocurrency exchange rates and earn tokens.
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